We provide the first approximation algorithm for dynamic newsvendor networks with stochastic demand and backlogging. Specifically, under a mild cost condition we prove the cost of a base-stock policy is less than 1.618 times the cost of an optimal policy. This answers an open question of Van...

Spare parts inventory management represents a challenge for aircraft companies. Determining the optimal allocation and consumption of spare parts is problematic due to the intermittent demand. Original equipment manufacturer (OEM) uses different models to evaluate inventory stock level to avoid...

An optimum supply value and the maximum expected profit are hardly affected by the type of demand distribution. The difference between quantities is at most one-tenth of the demand standard deviation in presented numerical examinations for the typical range of margin to discount ratio values. We...

We present an inventory management solution for a non-stationary capacitated multi-echelon distribution network involving thousands of products. Assuming backlogged sales, we revisit and leverage the seminal multi-echelon inventory management results in the literature to establish the structural...

Transshipment is one of the most effective policies to reduce the mismatch between supply and demand. Consumers show distinguished behaviors when facing stockout: some may accept transshipped items, some may search in another store by themselves, and others may give up buying. We define the...

Prior research has investigated the appropriate ordering policy for an inventory system. Two key factors to are daily demand and lead time. Many studies assume lead time and daily demand are independent. In this study, we relax this assumption for a continuous review inventory system and analyze...

In recent economic and business environment, firms, especially startups, are interested in financial opportunities, such as capital raising and acquisition. Typically, potential investors will be attracted by firms that exhibit nice trends of profit growth, and therefore firms need to manage...

Fixed costs of ordering items or setting up a process arise in many real-life scenarios. In their presence, the most widely used ordering policy in the stochastic inventory literature is the (s, S) policy. Optimality of (s, S) policies and (s, S)-type policies have been investigated for various...